Long-Term Alcoholism Treatment Costs

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Abstract
This study examines the efficient provision of alcoholism treatment by determining how several factors predict long-term alcoholism treatment costs. Treatment costs are estimated with an integrated analysis of insurance claims data that considers the decision to seek alcoholism treatment, the treatment location (inpatient or outpatient), and treatment costs conditional on treatment location. The analysis is useful for determining whether increased or alternative treatments in the short term influence treatment costs in the long term. We find that the probability of long-term treatment depends on whether the diagnosis is for alcohol abuse or alcohol dependence, and whether a comorbidity is present. Comorbidities have an impact on long-term costs by affecting where treatment occurs. Increased short-term treatment has a small negative effect on long-term costs for patients with dependence, and a negligible effect on abusers. Most of the treatment costs, however, occur in the short term.